Tax hikes rebuked by Merz

In the ongoing coalition negotiations between Germany's Union and SPD parties, the topic of tax increases has been a point of discussion. However, Chancellor Friedrich Merz has stated that he flatly rejects any considerations of tax increases to plug budget holes.

This stance is in line with the views of both Chancellor Merz and CSU chairman Markus Söder, who have both declared that they would not sign a contract with tax increases. The Union and SPD had agreed in their coalition contract not to raise taxes.

Despite Chancellor Merz's rejection, Finance Minister Lars Klingbeil (SPD) has not ruled out higher taxes for top earners and wealthy individuals to close an anticipated gap of more than 30 billion euros in the 2027 budget. The SPD is considering tax increases as an option, according to the paragraph.

Chancellor Merz, however, has maintained that they are not looking for what divides them but for what allows them to govern responsibly together. He stated that having different views on tax increases is acceptable, as they have different views on other matters.

The discussion about higher taxes for top earners and wealthy individuals has been ongoing for several weeks. The SPD finance minister, Lars Klingbeil, has been the most vocal advocate for this option.

It is important to note that no new information about the coalition contract, tax increases, or the views of Chancellor Friedrich Merz and other party leaders on tax increases was provided in the current paragraph.

The topic of tax increases was discussed at length during coalition negotiations, but it seems that a decision has yet to be made. As the negotiations continue, the public will await further updates on this matter.